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Politics Discussion - Brexit - View Post

Pyro as Bill said:
Barozi said:

Lot of Corona talk in here. Moving to a different topic:

Amsterdam edges ahead of London as Europe's top share trading hub

Amsterdam edged ahead of London to become Europe’s biggest share trading centre in January, benefiting from Brexit forcing European Union investors to use platforms inside the bloc.
Exchanges in the Dutch capital traded 9.2 billion euros ($11.15 billion) a day in January, more than London’s 8.6 billion euros, according to figures from Cboe Europe exchange, which operates in both cities.
This compares with an average of 17.5 billion euros traded daily in London during 2020, when Frankfurt was second with 5.9 billion euros a day, and Amsterdam sixth at 2.6 billion daily, Cboe said.

https://www.reuters.com/article/us-britain-eu-markets/amsterdam-surpasses-london-as-europes-top-share-trading-hub-ft-idUSKBN2AB0I8?il=0

Wasn't mentioned in the article but looked it up and previous 2nd place Frankfurt increased from 5.9bn in 2020 to 6.7bn in January 2021.


I think thats fair, to point out that fiancial servies are more than just "stock exchange".
And that the UK has alot of "derivatives and foreign exchange" area's, where the sums of money are much larger, and they are many times bigger (35-70 times) than of Amsterdamn, in those area's.  How resent were those data points though? I dont even know where to lookup/fact check if thats actually currently true.

So William Wright, makes a good point with the "calm down people, its just stocks" take.

However he ends (the tweet chain) with:

"The City cannot afford to be complacent: we have long argued that Brexit will have a ‘drip feed’ impact on the City on jobs, activity and tax receipts. But anyone expecting the shift we have seen in equities to happen elsewhere is going to be disappointed. / ENDS"



Day after you have headlines like these:


Derivatives trade worth billions flees London for New York post-Brexit:


https://finance.yahoo.com/news/brexit-london-new-york-swaps-trading-derivatives-075711621.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cucmVkZGl0LmNvbS8&guce_referrer_sig=AQAAAHXWfERYQXzR8cINOKqluNIcOTo7J268fS6czq081kDFZFLMdxFYuOUt7mLw75qz8WJSgOZ6vpr1uEjRL6iCfgWPxbBkawDIqUz-KyoNEB7DXn3Waxs08HBmKbA9miS94fW42-7YrMSgY-6L2_SmBFuSlO9Yg2j4WJCQFMFIVkSm


"Trade worth hundreds of billions has shifted from London to New York due to Brexit.

The European derivatives market has seen a significant shift away from the UK and towards the US since Brexit officially took effect at the turn of the year.

London has traditionally dominated the European market for interest rate swaps — derivative products that let companies guard against unexpected changes in interest rates.

But New York has seen its average weekly trade in these contracts balloon by over $600bn (£435bn) since the turn of the year, data provided to Yahoo Finance UK shows. Separate figures shows London's market share has fallen by 75%."


"
The data comes just a day after figures showed Amsterdam had overtaken London as Europe's share trading capital. The milestone underlines the impact of Brexit on the UK's financial services sector, which accounts for a significant chunk of the UK economy.

Derivatives are contracts between two parties based on an underlying price or asset — usually an interest rate or foreign exchange rate. The market is huge — worth a theoretical $600tn — and London has traditionally been the hub in Europe. But a failure to strike a Brexit deal covering financial services has driven business to New York, the other global hub for the market.

The International Swaps and Derivatives Association (ISDA) told Yahoo Finance UK that trading in euro-denominated interest rate swaps on US venues averaged $882.2bn per week in January. That was up from $246.2bn in January 2020 — an increase of more than 250%. The value of the overall market in New York fell by 21% in January, data showed, meaning New York was winning European business even as the market declined."

The thing is.... over time, will William Wright be proved correct?

Is this just a drop in the bucket? doesnt really effect the UK fiancial markets?
Or is it a death by a million small cuts, that mean in the years to come, the fiancial sector is alot smaller than it currently is?